Page 134 - RB GRENADA ANNUAL REPORT 2025_ONLINE

134 • Republic Bank (Grenada) Limited 2025 Annual Report • FINANCIALS

Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

18 Risk management (continued)
18.2 Credit risk (continued)
18.2.7 Analysis of Gross carrying amount and corresponding ECLs are as follows: (continued)
Advances (continued)

The increase in ECLs of Stage 3 portfolios was driven by increases in credit risk and the non performing loan
portfolio.

Investment Securities
2025 2024
% %

Stage 1 96.0 97.0
Stage 2 3.1 2.2
POCI 0.9 0.8

100.0 100.0

2025 Stage 1 Stage 2 POCI Total

Gross balance 464,452 15,122 4,245 483,819
ECL (290) (167) – (457)

464,162 14,955 4,245 483,362

ECL as a % of balance 0.1 1.1 – 0.1

2024

Gross balance 362,593 8,053 3,087 373,733
ECL (117) (125) – (242)

362,476 7,928 3,087 373,491

ECL as a % of Balance 0.0 1.6 – 0.1

The increase in ECLs was driven mainly by the increase in the portfolio.

18.3 Liquidity risk
Liquidity risk is defined as the risk that the Bank either does not have sufficient financial resources available to meet all
its obligations and commitments as they fall due, or can access these only at excessive cost.

Liquidity management is therefore primarily designed to ensure that funding requirements can be met, including the
replacement of existing funds as they mature or are withdrawn, or to satisfy the demands of customers for additional
borrowings. Liquidity management focuses on ensuring that the Bank has sufficient funds to meet all of its obligations.